First car insurance: groups, premiums and how to compare

The purchase price of a first car is only part of the budget. Insurance can vary sharply by model, postcode, driver, cover and excess, so get real quotes before choosing a vehicle. A lower insurance group can help, but it does not guarantee a lower premium.

What an insurance group tells you

The ABI and Thatcham research group vehicles from 1 to 50 using factors such as repair cost, performance, security and parts availability. Read the ABI explanation of insurance groups, then compare the exact trim and engine. A small car can still be expensive to insure if it is powerful, costly to repair or frequently stolen.

Compare quotes on the same basis

Use the same driver details, annual mileage, overnight parking, use and start date. Compare third-party, third-party fire and theft, and comprehensive policies; the cheapest headline price may have a high compulsory excess or limited cover. Check windscreen, courtesy car, legal expenses, personal belongings, driving other cars and breakdown add-ons separately.

Choose a voluntary excess you could actually pay alongside the insurer’s compulsory excess. Do not misstate address, occupation, mileage or main driver to lower the quote. Incorrect details can affect a claim.

Choose the car after the quote

Get quotes for several registrations before paying a deposit. Add your actual insurance quote, vehicle tax, fuel, tyres, servicing and parking to your first-year budget. The estimator shows a recurring-cost baseline; it does not predict an insurance premium or determine vehicle tax. A telematics policy may suit some drivers but review installation, data, curfew and driving-score conditions.

If you will use finance, compare insurance requirements in the agreement and read PCP, HP and PCH differences. See also when to buy a car and how to check a used car’s history.

Estimate your first-year running-cost budget

Enter your own quote and vehicle figures. The estimate covers recurring first-year use, not the purchase price or depreciation.

Annual mileage (miles) Real-world fuel economy (UK mpg) Fuel price (£ per litre) Your insurance quote (£ per year) Vehicle tax/VED from GOV.UK (£ per year) Servicing, repairs and tyres (£ per year) MOT, breakdown cover, parking and other costs (£ per year)

Enter a valid mpg figure to estimate fuel.

• Fuel:
• Insurance:
• Vehicle tax:
• Servicing, repairs and tyres:
• Other running costs:

Annual total: · monthly average: · cost per mile:

Check a vehicle’s tax on GOV.UK · View current VED rate tables · VCA: fuel-cost calculation

Fuel formula: annual miles ÷ UK mpg × 4.54609 litres per imperial gallon × price per litre. Use the exact tax for the car and your own insurance quote; neither can be inferred reliably from averages.